Any buyer can be approved for a mortgage loan with good credit worthiness. This includes work history, available cash reserves, bill payment history, salary, job stability, and debt to income ratio. Obviously the higher your FICO score the better your chances are for a loan with a favorable interest rate. A Veterans Administration (VA) loan require 0% down, FHA requires 3.5% down and Conventional loans requires 5 % down. I work with a few great lenders in the Greater Augusta area (CSRA) and currently most lenders require a minimum of a 620 credit score. I have three lenders that still only require a 600 credit score. I CURRRNTLY HAVE ONE LENDER THAT STILL ONLY REQUIRES A 580 CREDIT SCORE, CAN YOU BELIEVE IT!

Tye Caldwell Sr.
REALTOR® - Keller Wiliams Realty Augusta Partners

Sell or Buy with TYE

To answer your question, on FHA some lenders (like Bank of America) have no minimum FICO score.

I have a great mini series on my blog about credit scoring. Check it out.

Hi Barbara,
This is a very good question and we as real estate professionals are given varied answers at times from different lenders. My question to all of the realtors that are saying 580, what lender is accepting a 580 credit score? In the meantime Barbara, I have seen lenders requiring a 620 minimum score and I have not had one client turned down with this score yet. However, each lender may look at your credit differently. I have a variety of lenders I work with and am willing to put you in contact with one of your choice, because they are the experts in that area.
Thank you for your interest,

Janet Robinson------ Right Realtor, Right Time, Right Place, Robinson Right Way Home!

Barbara,

First time home buyers can be approved for loans with credit ratings in the high five hundreds to the seven hundreds. Obviously the higher your score the better your chances for a loan with a favorable interest rate. Lenders look at you as being less risk with a higher score and reward borrowers with better interest rates.

If you visit the USDA Rural Housing website, you will find that no credit score is required on direct housing loans. On guaranteed loans, I believe the minimum is 580. The USDA looks for an ability to repay obviously through alternative credit such as how borrower paid rent and utilities, etc.

Barbara,

This question was just asked of a few lenders with whom I've recently worked. The answer was that they could still offer mortgages to borrowers with scores as low as 580, provided there are no recent bankrupcties, charge offs, etc. You would be wise to speak with one of them so that your specific needs can be addressed.

Meanwhile, please look over the blog at the link below for information on programs available in Georgia to first time home buyers to help them with their down payments (grants, loans, more) and home buyer education resources. Then call me for an initial confidential consultation so that we can help determine the right lender for your specific needs.

Please call me if there is anything else that you need.

Solomon Greene
REALTOR® / Consultant - Keller Williams Realty Atlanta Partners

it has to be a 620 single filing

Barbara,

The closer to 700, or better is where we should all shoot for. You will get your best rates. You can get a mortgage even in the 500 range, but your interest rates will be higher, and not all lenders will lend with low scores. If you ahev a large down payment, to off-set the risk of the lender, you might have a better chance of getting a decent rate if your scores are marginal. FHA loan do allow for lower than average scores and you can still go in with little down. You will need to have 3% into the deal..which can count closing costs, etc.. Some of those closing costs can actually be wrapped into the mortgage. If this is your senario, find a REALTOR and most important;y, a lender, that handles and is comfortable with FHA loans. If someone tells you they don't handle them, find someone else to help you. In NY State, we have state funded loans FOR first time buyers, Look into your State and see IF they have such programs. In NY, the interest rates are usually better than average, but funds are limited. If you need an agent to work with, I can easily refer you to someone in your community that is experienced and knowledgeable. Just let me know. There is no cost or obligation, just some help.

Good Luck

Where are all the mortgage pros on this question? Given the history of events and changes over the last year in the mortgage industry, my best recommendation to you, Barbara, would be to speak with a reputable bank or mortgage lender to discuss your financing options, score particulars, monthly payments and short-to-long term financing goals. If you are not presently working with a Realtor, consider hiring a full-time buyer's agent to represent your best interests in the transaction. He or she should also be able to refer you to at least 3 or more preferred lenders with whom they trust and have a successful track record working with their clients.

There is not really a good answer for this but any lower than 620 would make it tough to do anything these days.

Barbara, as you can see there are ways to get a loan with less than perfect credit. Keep in mind if you are building a score to get a loan, the better your score the better your interest rate.

The higher the better....but you can defintely qualiy for FHA in the 500s. If ACORN is available in your area, you should be able to qualify in the id 600s. The better your score and the more money you have down will help your overall situation. FHA loans only require 3% doen. Good luck!

Your credit score can be in the 500 plus range and obtain an FHA loan. A convention loan would be about a 640'ish credit score. The higher the score the better the financing will be. Check with a good mortgage company to see what programs are available based on your credit and finances.

Just in today......an email from one of the mortgage reps we work with.... an email with the subject line
"640 is the new 620" The content of the email explained that the credit crisis continues unabated. Decoded what this meant was that in order to get a prime rate, what one used to be able to accomplish with a 620 score, one would now need to be a bit stronger. While there are fewer lenders participating in subprime, these still exist, but with larger down payments and higher interest rates.

There are actually loans still available with scores in the high 500's, but the interest rates would be somewhat higher the lower your score. If you would like a lead on a potential lender just let me know. Thanks - Steve

I think it's 620 or higher if you want a somewhat decent interest rate. The three brackets are 620, 680 and 720. A loan agent can tell you more about qualification requirements. You should also find out about first time buyer and downpayment assistant programs. Good luck to you.